The Value of Mortgage Leads

If you want to promote a mortgage program, be prepared to pay a pretty penny if you try to utilize online advertising methods such as Google Adwords. Currently, in order to grab the keyword ‘mortgage’ you will have to pay at least $10.95 per click. This means if you get 1,000 clicks to your mortgage program, you will have to pay $10,950. And with the average conversion rate being just 1 percent, that means you’ll only be getting 10 sales. Now, maybe if you’re a mortgage company you can afford to pay $10,950 for 10 sales, since you’ll be making hundreds of thousands more. But if you’re an affiliate promoting a mortgage program, you should consider a better alternative… mortgage leads.

What are mortgage leads? Mortgage leads are a collection of data pertaining to individuals that would be interested in a mortgage or refinancing loan. They are gathered by marketing companies who use a variety of methods both online and offline to collect them. Some of these methods involve extracting data from public records. Others use methods that make it easier to acquire more personal information. For example, a marketing company could conduct an online survey of a group of individuals. Or, maybe they get the data from realtors, banks or other entities having access to such information. Either way, most mortgage leads will contain enough information to allow for a direct mail campaign. This means at the very least, a basic package of mortgage leads will provide you with a person’s name and address and whether or not they own a home.

There are also more specific mortgage leads. These are known as mortgage trigger leads or exclusive mortgage leads. Mortgage trigger leads collect data based on a person’s credit report. Usually, with mortgage trigger leads, the person had just made an inquiry, indicating they are obviously interested in a mortgage loan. Mortgage trigger leads are a bit more expensive, because they target a niche of people that are very interested in getting a loan. This translates into a better conversion rate.

Then there are exclusive mortgage leads, another type of more specialized mortgage leads. They do not target highly-convertible leads like mortgage trigger leads do, but they offer another invaluable advantage… exclusivity. Just as their namesake indicates, with exclusive mortgage leads, your list is sold only to you. This means that you don’t have to worry about other marketers or mortgage companies trying to reach the clients that you are also trying to advertise to. But, just like mortgage trigger leads, expect to pay a little bit more for the exclusivity.

Price-wise, the fees associated with mortgage leads will depend on the company you decide to work with. But generally, they will range from a few cents to a few dollars. If you’re low on funds, it’s best that you just order the minimal amount of mortgage leads, like maybe 1,000 or so. From there you need to decide how you’re going to do your direct mail campaign. Believe it or not it doesn’t have to be fancy. There are plenty of marketers that use regular stamps and Microsoft Office-created flyers to advertise to their mortgage leads. In fact, doing things this way is a great method to affordably determine if your mortgage leads will convert. All you have to do is get a pack of 100 stamps, (which are available from USPS for just $41), a color cartridge, a pack of paper and envelopes. All together these things should cost less than $100. From there, you can test your market, mailing out flyers to 100 mortgage leads at a time. You’ll want to aim for a 10 percent conversion rate, which means 10 sales. If you’re not getting the sales you’re looking for, you can consider changing your flyer or even thinking about whether your mortgage leads were worthwhile to begin with.

Disclaimer:This blog or article is for information purpose only, and should not be treated a professional advise or price protection guarantee. This blog is mainly used for search engine optimization and other commercial purposes and it is advised that readers seek professional consultation in the field of interest for more information.